Any enterprise has a certain stock of working capital. They consist of circulation funds (SOEs at the warehouse, shipped products and others) and revolving production assets (both basic and auxiliary materials, raw materials, and labor items that are consumed in one production cycle, which means that their value is transferred to manufactured goods and services immediately as a whole).
The effectiveness of the use of working capital is due to various factors. If the internal ones are directly dependent on the activities of the organization itself, then the external ones exert their influence regardless of the interests of the company or its activities. These include:
- the economy of the country as a whole;
- Features of the legislation, in particular, tax;
- interest rates on credit products and the conditions for their receipt;
- special-purpose financing;
- other.
Given these features, enterprise management can draw up the most optimal plan for the rational use of their own resources.
The efficiency of the use of working capital is characterized using special indicators, coefficients:
- turnover (Cob).
- the duration of 1 revolution in days (Cob / day).
- loading funds in 1 revolution (Kzag / rev).
The economic efficiency of the use of working capital is as follows: the more actively the company involves working capital in the production process, the less expenses it takes to produce products. This frees up reserves for increasing production volumes, upgrading equipment, introducing new equipment, technologies and more.
Any enterprise has significant opportunities to increase the efficiency of working capital. If we talk about the sphere of production, then most of the reserves are in stocks. Of course, they are necessary to ensure the continuity of the production process, but at the same time it is they who are temporarily not involved in production. To organize the efficient use of enterprise stocks and their reduction, their rational use is necessary. The following activities are also relevant:
- effective organization of storage facilities, - improvement of standardization, - improving the supply policy of the enterprise.
If the management of the enterprise sets a goal to significantly improve the efficiency of the use of working capital and is closely engaged in improving the organization of the production process, equipment and production technologies, it will be possible to reduce the period of working capital in the stage of work in progress, which will have a positive impact on all areas of the organization.
Also, for such an indicator as the efficiency of the use of working capital, it is important not to allow excessive financing of the sphere of circulation, since working capital here only helps to bring goods, work or services to the public. For this, it is necessary to rationally organize a sales service, apply modern calculation methods, and observe discipline. If the speed of turnover increases, resources will be released that can be used to meet the current needs of the organization.
